Universal Child Care Research Articles

Care in crisis: COVID-19 as a catalyst for universal child care in the United States

School closings during COVID-19 exposed an under-addressed gender equity issue in the United States: child care in crisis. To better understand the child care crisis in the current U.S. context, we detail how New York City is addressing child care during COVID-19. We then connect the current approaches to the Lanham Act that was instituted during WWII as a historical parallel. Ultimately, we argue for the adoption of a universal system that is affordable, high-quality, federally-funded with local involvement and discretion, and flexible for primary caregivers seeking care support. This potential system builds on current congressional proposals and should take into account the challenges primary caregivers face in order to disrupt gender imbalances in care, and in turn, produce greater gender equity. COVID-19 is an opportunity to instill lasting change by improving the current U.S. child care model.

Segregation in a Universal Child Care System: Descriptive Findings from Norway

Abstract In a universal child care system with low or no parental co-payments, parents of advantaged socioeconomic backgrounds can improve the opportunities of their own children if they are better at identifying and occupying the high-quality centres, relegating children from disadvantaged backgrounds to centres of lower quality. To avoid such segregation, the generously publicly funded universal child care system in Norway is based on strict regulations of access, quality and co-payment. Still, using administrative data covering every child in Oslo over a decade, we document substantial segregation, with indications that children from advantaged families cluster in higher-quality centres. The segregation stems from parents of similar socioeconomic backgrounds applying to the same centres, and partly from private centres ‘cherry-picking’ advantaged children. Though parental application behaviour can to some extent be explained by residential segregation, we show that reallocating children across centres only 500 metres from their homes could substantially reduce segregation by immigrant background. We conclude that a child care system with almost universal participation and strict quality standards may not be sufficient to reduce social inequality and improve opportunities of disadvantaged children.

About the Contributors

About the Contributors

Does Starting Universal Childcare Earlier Influence Children's Skill Development?

As many developed countries enact policies that allow children to begin universal childcare earlier, understanding how starting universal childcare earlier affects children's cognitive and noncognitive skills is an important policy question. We provide comprehensive evidence on the multidimensional short- and longer-run effects of starting universal childcare earlier using a fuzzy discontinuity in the age at starting childcare in Germany. Combining rich survey and administrative data, we follow one cohort from age 6 to 15 and examine standardized cognitive test scores, noncognitive skill measures, and school track choice in a unified framework. Children who start universal childcare four months earlier around age 3 do not perform differently in terms of standardized cognitive test scores, measures of noncognitive skills, school track choice, or school entrance examinations. We also find no evidence of skill improvements for children with low socioeconomic status, although we provide suggestive evidence that they may benefit from high-quality care. Our estimates refer to children who start childcare before they become legally entitled, for whom the literature would predict low gains to starting childcare earlier. We provide further evidence on this relationship between parental resistance to and children's potential gains from childcare. Simply allowing children to start universal childcare earlier is hence not sufficient to improve children's skill development, particularly for children with low socioeconomic status.

Expanding Access to Universal Childcare: Effects on Childcare Arrangements and Maternal Employment

In most OECD countries, subsidised childcare is a key instrument to support maternal employment. Using a large reform implemented in Luxembourg in 2009, I study the effect of expanding access to subsidised childcare on childcare and employment decisions of women in a context where childcare is universal and heavily subsidised, but bound by capacity constraints. The identification relies on temporal variation across child age groups. The results show that, in response to the reform, the employment rate of mothers increased by 4-7 percentage points and their hours of work by around 3 hours per week. Studying heterogeneous effects reveals a differential impact of the reform for more vulnerable mothers. Parents whose youngest child is under the age of 3 are found to use more daycare services, for longer hours, while the use of informal care remains unchanged. These results suggest that there is no crowding out effect of the new policy.

The Long-Run Impacts of a Universal Child Care Program

Past research documents the persistence of positive impacts of early life interventions on noncognitive skills. We test the symmetry of this finding by studying the persistence of a sizeable negative shock to noncognitive outcomes arising with the introduction of universal child care in Quebec. We find that the negative effects on noncognitive outcomes persisted to school ages, and also that cohorts with increased child care access had worse health, lower life satisfaction, and higher crime rates later in life. Our results reinforce previous evidence of the central role of the early childhood environment for long-run success. (JEL I12, I31, J13, K42)

The Effect of the Universal Child Care Cash Benefit on Female Labour Supply in Spain

The aim of this paper is to measure the potential and real effect of universal child care cash benefit schemes on female labour supply. This subsidy, which was considered ground-breaking due to the fact that it was available to all, was introduced through the Spanish Government Act 35/2007 (BOE, 2007) and was in effect until 2010. Known as the “baby bonus”, this subsidy of €2,500 per child born aimed to increase the birth rate in Spain. The introduction of this family policy provides a unique setting for a quasi-experiment, using semi-parametric DiD analysis and individual panel data sourced from the EU-SILC dataset. The results provide evidence of the positive effect of a cash-for-care subsidy that reduces the costs of a new child and increases female labour supply.

La transformation de l'offre de services de garde au Québec: Une brèche dans la collectivisation du travail de reproduction sociale?

In 1997, the government of Québec instituted a low-cost and universal childcare services program most commonly available through the "centres de la petite enfance (CPE)" (early chilldhood centers). Since 2003, this model is being slowly dismantled on account of an explosion in the number of commercial daycare centers and, since 2015, an adjustment of rates according to family revenues. This research article gathers scattered information about the childcare services offer changes in Québec to demonstrate that tearing down a section of the Québécois family policy lowers the collectivization of social reproductive work.

Unconditional cash transfers and parental obesity

In this study, we evaluate the impact of unconditional family cash transfers on the body mass index (BMI) and obesity of parents. Our approach is based on the implementation of the Universal Child Care Benefit in 2006 for all children in Canada under 6 years of age. We show that the reform caused decreases in BMI and the prevalence of overweight and obesity in mothers with young children. We also report larger changes at the upper tail of the distribution of BMI in both lower-educated mothers and single mothers. In terms of fathers, we find that the policy had no impact on weight outcomes.

Long Run Effects of Universal Childcare on Personality Traits

Although universal childcare has become an essential tool to support child development, few economic studies analyze its effects on non-cognitive skills and little is known about causal effects on these skills in the long run. In this paper we go beyond short run analyses and examine the long run effects of one additional year of universal childcare on students’ personality traits in adolescence. We focus on personality traits as part of their non-cognitive skills set and as important predictors of later educational achievements. As of 1996, a legal entitlement to universal childcare applied to children of three years and older in Germany. However, severe shortages in the former-West meant that many children could not get a childcare place and had to wait a full year until the next entry date. Using data from the National Educational Panel Study (NEPS) we estimate effects of one additional year of childcare by exploiting geographical variation in the timing of childcare entry arising from local supply constraints. We find that an earlier entry in universal childcare increases extroversion in adolescence, which has been shown to be associated with favorable labor market outcomes.

Universal Childcare for the Youngest and the Maternal Labour Supply

Universal Childcare for the Youngest and the Maternal Labour Supply

Universal Childcare for the Youngest and the Maternal Labour Supply

In this paper, we investigate whether the expansion of childcare leads to an increase in the female labour supply. We measure female labour supply at both the extensive and intensive margin. For identification, we exploit a nationwide reform that expanded childcare for 1–2- year-olds in Norway. Our results reveal a significant increase in the overall employment of mothers in the target group, but only weak evidence of an increase in contracted hours of work. However, both adjustments are only short term following the reform. When we consider subgroups of mothers more closely, we find substantial heterogeneity in the affected outcomes and the timing of these effects. In particular, when we exclude mothers on job-protected maternity leave and with currently zero hours of work from the target group, we estimate even larger effects on employment and now significant effects on actual hours of work. For mothers with more than one child, we find significant long-term effects of the reform on both employment and hours of work.

Revealing the Hidden Mechanism: The Effects of Early Childhood Education and Care After Half a Century

The effects of early childhood education and care (ECEC) have been widely researched, but questions remain about the average treatment effect of a universal ECEC and its underlying mechanisms. Adopting instrumental variable and mediation analyses, this study reveals the long-run local average treatment effects and mechanism of universal ECEC. By exploiting the differences in the rates of expansion of childcare institutions across regions as the instrumental variable, the result shows that childcare raises the future income of children around the age of 50 years through an increase in wages. Furthermore, most of the effects appear for women. Second, mediation analysis shows that the effect on future income can be explained by a potential increase in educational attainment. These results imply that a universal childcare system may reduce intra- and inter-generational inequality.

Universal Childcare for the Youngest and the Maternal Labour Supply

In this paper, we investigate whether the expansion of childcare leads to an increase in the female labour supply. We measure female labour supply at both the extensive and intensive margin. For identification, we exploit a nationwide reform that expanded childcare for 1–2- year-olds in Norway. Our results reveal a significant increase in the overall employment of mothers in the target group, but only weak evidence of an increase in contracted hours of work. However, both adjustments are only short term following the reform. When we consider sub-groups of mothers more closely, we find substantial heterogeneity in the affected outcomes and the timing of these effects. In particular, when we exclude mothers on job-protected maternity leave and with currently zero hours of work from the target group, we estimate even larger effects on employment and now significant effects on actual hours of work. For mothers with more than one child, we find significant long-term effects of the reform on both employment and hours of work.

Variation in center quality in a universal publicly subsidized and regulated childcare system

A large literature suggests that high quality childcare programs can produce positive and lasting effects by promoting math, language and social-emotional skills, referred to as school readiness skills, especially for children of parents with low education. Hence, a universal childcare system with easy access has the potential to make a substantial difference in children's lives and reduce socio-economic disparities in educational outcomes. However, if childcare quality varies across centers, universal childcare systems can also potentially increase disparities in school readiness if the children of more highly-educated parents select into centers of higher quality. Using a unique dataset with one-to-one assessments of school readiness skills among 627 five-year-olds attending 67 different childcare centers, we investigate differences in childcare quality by testing whether covariate adjusted assessments scores are clustered by center. Through fixed effect and random effect analyses, we demonstrate significant variation in school readiness across centers. However, selection into centers of different quality appears to be limited.

The impact of universal child benefits on family health and behaviours

In 2006, the Universal Child Care Benefit was introduced in Canada for all children aged less than 6 years. This program aims to help cover the cost of children and to provide financial assistance to families with young children in their choice of childcare. We exploit this policy change to estimate the effects of unconditional family cash transfers on the health and behaviours of two-parent families and their children. Using a difference-in-differences model, we find no evidence that the program improved child and parental outcomes in aggregate. A modest but fragile beneficial effect is found for low-education families and for girls.

Who Benefits from Universal Child Care? Estimating Marginal Returns to Early Child Care Attendance

We examine heterogeneous treatment effects of a universal child care program in Germany by exploiting variation in attendance caused by a reform that led to a large expansion staggered across municipalities. Drawing on novel administrative data from the full population of compulsory school entry examinations, we find that children with lower (observed and unobserved) gains are more likely to select into child care than children with higher gains. Children from disadvantaged backgrounds are less likely to attend child care than children from advantaged backgrounds but have larger treatment effects because of their worse outcome when not enrolled in child care.

Does Quebec’s subsidized child care policy give boys and girls an equal start?

AbstractAlthough an increasing body of research promotes the development of universal early education and care programs, little is known about the extent to which these programs affect gender gaps in academic achievement and other developmental outcomes. Analyzing the introduction of universal highly‐subsidized child care in Quebec, we first demonstrate that there are no statistically significant gender differences in the average effect of access to universal child care on child outcomes. However, we find substantial heterogeneity in policy impacts on the variance of developmental and behavioural scores across genders. Additionally, our analysis reveals significant evidence of differential parenting practices by gender in response to the introduction of the policy. The analysis is suggestive that the availability of subsidized child care changed home environments disproportionately and may be responsible for the growing gender gaps in behavioural outcomes observed after child care is subsidized.RésuméEst‐ce que la politique de garderies subventionnées du Québec donne aux garçons et aux filles un avantage de départ égal? Même si un corpus de recherches croissant promeut le développement de programmes universels de garderies et d’éducation préscolaire, on connaît peu de choses sur la nature de l’impact de ces programmes sur les écarts dans la réussite académique et dans les résultats comportementaux entre genres. Analysant l’introduction du programme universel fortement subventionné de garderies au Québec, on montre qu’il n’y a pas de différences statistiquement significatives entre genres dans l’effet moyen de l’accès au programme universel d’éducation préscolaire sur les résultats pour l’enfant. Cependant, on découvre une hétérogénéité substantielle entre genres dans les impacts de la politique sur la variance des scores pour ce qui est du développement et du comportement. De plus, l’analyse révèle des résultats significatifs en termes de pratiques parentales différenciées entre genres en réponse à l’introduction de la politique. L’analyse suggère que la disponibilité de l’éducation préscolaire subventionnée modifie de façon disproportionnée l’environnement à la maison, et peut être responsable pour l’écart croissant entre genres dans les résultats comportementaux observés après l’introduction de l’éducation préscolaire subventionnée.

Guaranteed Employment and Universal Child Care for a New Social Contract

The United States is falling behind many other rich nations on a broad spectrum of measures of the quality of life. These include social mobility, inequality, education, crime, health and longevity. Polls suggest that many Americans have not only lost their optimism concerning the future, but have become angry as well. This article sets forth the elements of a new social contract, one that would deliver substantial results almost overnight and which conforms to the traditional American values of the importance of work, that everyone should have a fair opportunity for upwards mobility, and the central importance of the family. This proposal is composed of two parts: The first is guaranteed employment, and where necessary, the retraining required to enable workers to successfully enter the regular workforce. The second is universal child care to give all parents the possibility of participating in the labor force. The article discusses in depth how these measures would reverse the relative decline in quality of life in America. It also reveals how, although these measure would be costly, their payoff for the economy would far offset the costs.

Universal Child Care and Long-Term Effects on Child Well-Being: Evidence from Canada

We evaluate the long-term effects of the Canadian province of Quebec’s $5 per day universal child care policy on child and youth well-being (health, behavior, motor and social development). Treated children are followed for more than 19 years. Estimates based on a nonexperimental evaluation framework show that the negative effects on preschoolers documented in previous studies persist over time for most outcomes. Once children enter school, only the impact on emotional disorder and anxiety persists, but the magnitude is smaller than for preschool children. For teens aged 12–19 years old, our estimates do not suggest that the effects persist.